×

We've got news for you.

Register on SowetanLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

PetroSA board in 'unprecedented' plea for business rescue

The board of troubled state-owned oil company PetroSA has asked its holding company‚ the Central Energy Fund (CEF)‚ to place it under business rescue‚ raising questions over its status as a going concern.

PetroSA has suffered huge financial losses over the past three years‚ but it is unprecedented for a state-owned entity to ask to be placed under business rescue.

PetroSA has a projected loss of R2.2bn for the year to March 2017. This follows its record R14.6bn net operating loss in the 2014-15 financial year.

Despite these losses‚ PetroSA paid out large performance bonuses to its executives at the end of 2016‚ linked to the Ikhewzi project‚ responsible for a near R15bn impairment in financial 2014-15.

This story appeared in Business Day

 

 

 

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.